ABI Legislative Preview

With the 2026 legislative session now underway, the Iowa Association of Business and Industry (ABI) has a full agenda, advocating for legislation to ensure Iowa companies can continue to thrive while also attracting new businesses to the state.

The organization, which represents businesses across all industries in Iowa, is focusing its attention on workforce solutions, tax policy, and regulatory reform.

“We’re focused on the fundamentals that help businesses succeed in Iowa,” said Nicole Crain, president of ABI. “Workforce, taxes and regulation are always at the core of those conversations, and we’ll be actively engaged wherever those issues come up during the session.”

Workforce Challenges and Solutions

Attracting, retaining, and upskilling Iowa’s workforce remains a top priority for ABI in 2026. Iowa businesses operate in a tight labor market — with the state’s labor force participation rate around 67% and unemployment rate under 4%. A continued legislative focus on workforce support would strengthen Iowa’s ability to recruit, retain and develop talent critical to growth, ABI leadership said.\

“Before the pandemic hit, Iowa had a workforce participation rate that was the envy of the country. We are bouncing back but there are barriers,” said JD Davis, vice president of public policy for ABI.

Access to affordable childcare and housing tops the list, Mr. Davis said. Several solutions have been implemented since 2020 to help Iowa’s workforce, but there’s still work to be done to address affordability, accessibility, and sustainability.

“Is there a best practice that’s happening somewhere in Iowa?” Mr. Davis said. “Part of the job of ABI is to be reflective of what policymakers are thinking about, and perfecting what we already have that’s working.”

The organization is also focused on expanding training programs and work-based learning opportunities that link employers with students and Iowans looking for a job. There is a finite number of employees in Iowa, Mr. Davis said, so adding skills to the workforce helps employers get more from their workers and helps employees get more from their careers.

ABI has been working to solve the skills gap for years, added Ms. Crain. “We’ve invited legislators to learn about manufacturing, to come to schools and community college campuses to see what we’re doing to get students ready,” said Ms. Crain. “Part of our role is educating legislators about how our members are part of the solution — not just coming to them and asking for money.”

Tax Policy and Competitiveness

Building on last session’s progress, ABI continues to advocate for tax policy that enhances Iowa’s competitive edge, including property tax relief and maintaining coupling with federal tax law changes that encourage growth.

“They’ve been at (property tax reform) for three sessions,” said Mr. Davis, adding he is hopeful this is the year for a solution. “Property taxes are overripe for reform,” he said. “But let’s not just shift the burden from one group to another. Relief doesn’t come at the expense of someone else.”

ABI supports legislation that will provide relief for not only residents but commercial and industrial businesses as well.

“We have the same players in place who have been doing lots of work on this for years now. I’m hopeful we will figure out how to get something done,” said Mr. Davis. “But this is an election year, so there will be an impulse to do something that has great presentation value but may not get everything done. We hope they can do something with a long-term positive effect.”

ABI also encourages Iowa to stay aligned with federal tax reform gains, such as short-term incentives and permanent tax cuts. “The federal reconciliation bill, or the ‘One Big Beautiful Bill’ has notable provisions that are extremely beneficial to businesses of all sizes,” said Brad Hartkopf, senior director of public policy for ABI. “These are good drivers for investment that will help businesses hire more and make commitments to long-term investments.”

While some states, including Illinois, have opted to decouple from federal tax provisions to bolster state revenues, Iowa has so far remained aligned with federal tax law. Mr. Hartkopf said the Iowa Department of Revenue estimates the bill would have a short-term budget impact of about $430 million in the current fiscal year.

ABI remarked that the federal reconciliation bill has allowed the country to continue on a growth trajectory, even amidst geopolitical uncertainty. “Other states are making it harder for businesses to grow. Staying coupled with the federal law will put Iowa at a competitive advantage when it comes to new business creation, expansion of existing businesses and business location decisions, he said.

Regulatory Modernization and Reform

Regulatory reform remains a cornerstone of ABI’s public policy agenda, including streamlined permitting processes, elimination of outdated or redundant regulations, and more collaborative rulemaking with state agencies.

“There is never a year when members aren’t interacting with the state government in some form,” Mr. Davis said. “That relationship never stops, and we have built up a pretty good rolodex to make sure things work.”

ABI will be active throughout the session with events designed to keep members informed and engaged, including:
• Legislative briefing and reception (Jan. 14) — strategic networking and priority overview.
• Weekly legislative updates providing real-time insight into bill movement during session.
• Business Day in Des Moines (March 11) — a key advocacy day connecting business leaders directly with legislative leadership. ABI